Small Business Loans website crashes as 30,000 applications for £ 50,000 loans in 30 minutes
THE website that tells small businesses how to apply for a £ 50,000 coronavirus loan crashed this morning due to high demand.
The program’s website, which launched online at 9 a.m. today, went down after receiving 30,000 hits in just 30 minutes, Treasury told The Sun.
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Under the new scheme, businesses can get loans worth up to 25% of their turnover, up to a maximum of £ 50,000.
Companies in difficulty will receive the money in a few days.
The new “rebound” loans are 100% guaranteed by the government.
The government will cover the interest on the loans for the first 12 months, with businesses able to repay the remaining balance over the next five years at an interest rate of 2.5%.
What other help is there for businesses?
- The government offered workers on leave through its Coronavirus Retention Program, paying up to 80 percent of salary up to £ 2,500 per month
- While self-employed people can get up to 80 percent of the profits paid by the government for the next three months – again up to £ 2,500 per month
- Under the Coronavirus Business Interruption Loan Program, SMEs can get loans and overdrafts of up to £ 5million for up to six years and the government guaranteed up to 80 percent of these loans
- Small businesses can get grants of up to £ 10,000 to help with the running costs of the business
- He also announced VAT payments and self-assessment tax returns are deferred for three months
- SMEs that cannot pay their tax bills can ask HMRC for a “time to pay” agreement so that all debt collection is suspended.
- And they can go up to two weeks sick pay – almost £ 200 per employee up to 250 staff – reimbursed by the government.
- A 12-month stay on business rates has been introduced for many companies
The program is aimed at smaller UK businesses and individual traders who go bankrupt due to the unprecedented impact of the coronavirus shutdown.
The British Business Bank website was closed for less than an hour this morning due to “unprecedented demand,” the Treasury said, but is now back up and running.
Small businesses seek help from their lenders, but the British Business Bank website has information on how to apply.
A number of small business owners took to the issue on Twitter this morning.
One Twitter user said, “Can I just ask? Is anyone else having trouble applying for a business rebound loan?
“Getting 505 errors on the Business Bank website and has been for an hour so far!” “
While another posted a photo of the error message and wrote, “So I guess we’re just waiting for the Bounce Back loan program to bounce back!”
The new micro-loan program comes after growing criticism that too few loans were approved under the current Coronavirus Business Interruption Loan (CBILS) program.
These are only supported by 80 percent by the government, which means that banks have to cover the additional 20 percent.
Small businesses cannot apply for a rebound loan if they are already applying for CBILS.
But if you’ve ever received a loan of up to £ 50,000 under CBILS and want to transfer it into the bounce loan program, you can arrange this with your lender until November 4th.
You can get more information on the GOV.UK website.
CORONAVIRUS CRISIS – STAY INFORMED
Stay tuned for the latest news and numbers – and essential advice for you and your family.
A few weeks ago, banks were ordered to speed up small business lending against coronaviruses, otherwise they will “destroy people’s livelihoods.”
It happened after just 2% of small businesses received loans for coronavirus.
Meanwhile, thousands of small businesses say they will run out of cash in three months.